Wage growth eases while numbers in payrolled employment fall back
Market expectations of a further interest rate rise in November ease back after the latest ONS figures.
The pace of basic wage growth has fallen back for the first time since January, according to official figures being closely watched by the Bank of England.
Data from the Office for National Statistics (ONS) showed that average basic wages rose by 7.8% during the three months to August compared to a year earlier.
That was down slightly from a revised rate of 7.9% last month.
Separate figures for average weekly earnings, which include bonus payments, showed a marked easing to 8.1% from 8.5% but that is believed to reflect the impact of public sector awards paid in June.
The data may provide some comfort to policymakers at the Bank who are worried that high wage growth risks stoking inflation which is currently running at 6.7%.
The concern is that any boost to household spending power, because wage growth is running at a higher pace, will bolster demand and place upwards pressure on prices.
It was revealed last month that the rate of pay growth was outstripping inflation for the first time in 18 months.
But the Bank's monetary policy committee (MPC) held off on a 15th consecutive interest rate rise due to other factors.
That was down slightly from a revised rate of 7.9% last month.
Separate figures for average weekly earnings, which include bonus payments, showed a marked easing to 8.1% from 8.5% but that is believed to reflect the impact of public sector awards paid in June.
The data may provide some comfort to policymakers at the Bank who are worried that high wage growth risks stoking inflation which is currently running at 6.7%.
The concern is that any boost to household spending power, because wage growth is running at a higher pace, will bolster demand and place upwards pressure on prices.
It was revealed last month that the rate of pay growth was outstripping inflation for the first time in 18 months.
But the Bank's monetary policy committee (MPC) held off on a 15th consecutive interest rate rise due to other factors.
news.sky.com
